Inflation Headlines Are Misleading Investors | S2 E055 | 06-27-25

Markets with Megan: A Quick Financial Markets Update · Jun 27, 2025 · 3m · transcript

Today's market headlines about inflation being subdued don't tell the full story. Core PCE, the Fed's preferred inflation gauge, came in hotter than expected at 2.7% year-over-year, moving further from the Fed's target.

• Core PCE rose to 2.7% year-over-year, above expectations of 2.6% and higher than last month's 2.5%

• Inflation impacts from tariffs haven't shown up in the data yet but likely will in coming months

• Fed is staying on hold until they get clarity on tariffs and what companies are passing on to consumers

• Today's market rally likely reflects optimism about potential trade…